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al manhal A f o u n t o f k n o w l e d g e 14 A DAY IN THE LIFE OF... 9 COMMUNITY The magazine explaining the oil and gas industry Unravelling the mysteries of coiled tubing Number One 2005
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al-manhal Issue 1-2005 (English)

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Page 1: al-manhal Issue 1-2005 (English)

al manhalA f o u n t o f k n o w l e d g e

14 A DAY IN THE LIFE OF...9 COMMUNITY

The magazine explaining the oil and gas industry

Unravelling the mysteries ofcoiled tubing

Number One 2005

Page 2: al-manhal Issue 1-2005 (English)

“We urge our youth to take advantage of the

opportunities available to acquire

knowledge... we always call for the

development of... the people’s scientific

capabilities, technical skills and technological

expertise in order to meet society’s urgent

requirements and needs...”

His Majesty Sultan Qaboos bin Said

Managing EditorNutayla al Kindy

Design ConsultantsDDB Oman

Translation & EditingPetroleum Development Oman

PrinterMazoon Printing Press

Advisory BoardMoza al Adawi, Ministry of Oil & GasLynda Armstrong, Petroleum Development OmanMundhir al Barwani, Petroleum Development OmanFrits Eulderink, Petroleum Development OmanProf. Anton McLachlan, Sultan Qaboos UniversityYousef al Malahi, Ministry of EducationDr. Amer al Rawas, Sultan Qaboos University

Address editorial correspondence to:[email protected] manhal, HXM/21, PDO, P.O. Box 81,

Muscat 113, Oman

© 2004 Petroleum Development OmanArticles from al manhal may be reprinted without specific permission on condition that: thetext be neither edited nor abridged; the magazine and Petroleum Development Oman becredited; and a copy of the reprinted article be provided to al manhal’s managing editor.

Page 3: al-manhal Issue 1-2005 (English)

CONTENTS

1

al manhal number one 2005

2 Unravelling the mysteries of coiled tubingAlthough its origins were in wartime, coiled tubing came of age within the oil and gasindustry. Learn a little about the myriad applications of this flexible, continuous steel pipe.

9 Supporting the community PDO has always taken its responsibility to be a good corporate citizen very seriously, andhelping the local communities in its concession area is a crucial part of this.

12 How to move a rig PDO has to manage an average of one rig move a day—a complex and difficult processthat involves some 40 people at both the departure and arrival points, and the rig moveteam itself which numbers around 50 people.

14 A day in the life of...PDO Applicant, Hala Al-Mubarak

16 Recovering our STOIIP The stock-tank oil initially in place (STOIIP) is the total volume of all the known oilinitially in place in a given reservoir expressed as the volume it would fill if it was allbrought to the surface.

>>

1214

16 29

Page 4: al-manhal Issue 1-2005 (English)

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COILED TUBING

al manhal number one 2005

UNRAVELLING THE MYSTERIES OFCOILED TUBINGUNRAVELLING THE MYSTERIES OFCOILED TUBING

Page 5: al-manhal Issue 1-2005 (English)

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al manhal number one 2005

Coiled Tubing’s origins date back to 1944, when British engineers

developed very long, continuous underwater pipelines to transport

fuel from England to mainland Europe to supply the Allied armies’

advance following the D-Day landings. The project was dubbed

‘PLUTO’, short for ‘Pipe Lines Under The Ocean’, and the successful

fabrication and spooling of the pipelines provided the foundation for

the development of the coiled tubing used in the oil industry today.

>>

Coiled Tubing’s origins date back to 1944, when British engineers

developed very long, continuous underwater pipelines to transport

fuel from England to mainland Europe to supply the Allied armies’

advance following the D-Day landings. The project was dubbed

‘PLUTO’, short for ‘Pipe Lines Under The Ocean’, and the successful

fabrication and spooling of the pipelines provided the foundation for

the development of the coiled tubing used in the oil industry today.

>>

Page 6: al-manhal Issue 1-2005 (English)

COILED TUBING

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al manhal number one 2005

The term ‘coiled tubing’ covers any

continuously milled (i.e. with no joints) steel

tube that is flexible enough to be coiled onto

a spool. The tube is made by taking a flat

strip of steel and passing it over a series of

rolls that fold it first into a ‘U’ shape. A

further set of rolls then brings the two edges

into contact and welds them together. The

tube is then formed into its final dimensions

and fully tested – including by x-ray – before

it leaves the foundry.

The development of coiled tubing (CT) as

we know it today dates back to the early

1960s, when the California Oil Company

and Bowen Tools created the first fully

functioning CT unit, and used it to wash out

sand that was obstructing the oil flow in its

wells. But CT’s origins lie further back –

during the Second World War to be precise.

In 1944 British engineers developed very

long, continuous underwater pipelines to

transport fuel from England to mainland

Europe to supply the Allied armies’ advance

following the D-Day landings. The project

was dubbed ‘PLUTO’, short for ‘Pipe Lines

Under The Ocean’, and the successful

fabrication and spooling of the pipelines

provided the foundation for the development

of the coiled tubing used in the oil industry

today.

The biggest benefits of CT, compared

with solid pipes that must be inserted in

sections, are both the speed at which it can

be applied and the fact that well production

can be maintained throughout the process.

Unlike solid pipes, it can also be re-used a

number of times, making it much more

economical for the type of regular

maintenance work demanded by a typical oil

field. CT operators use sensors and computer

software to check when a tube is reaching the

end of its life and needs replacing. The latest

development in CT is what is known as a

concentric coil, which allows water to be

pumped into the well at a constant velocity.

Well maintenance applications still

account for around three-quarters of all CT

use in the industry. Technical advances have

The key elements of a coiled tubing unit:A CT unit contains all the necessary equipmentto operate in the field. With everything mountedon trucks it is fully mobile.

Page 7: al-manhal Issue 1-2005 (English)

COILED TUBING

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al manhal number one 2005

also increased its use in well drilling and

completion applications, particularly shallow

wells of around 300-400 metres depth. In

these shallow wells, the drill bit is first

attached to the coiled tubing, and then once

the well is drilled, the complete apparatus is

simply cemented in place ready to start

producing the oil. This is known as ‘ultra-slim

completion’ and it is a method that PDO has

practiced in the past in its Yibal field.

Although CT is flexible, it should be

borne in mind that ‘flexible’ is a relative

term. CT is much more flexible than rigid

pipes, but each CT unit needs to have plenty

of power to straighten up the tubing so that it

can be inserted into the well. The tubing can

unwind and be fed into a well at a rate of up

to 30 metres per minute, although this varies

depending on the width of the well-bore and

the presence of any impediments on the way

down; often the speed is closer to 15-20

metres per minute. Removing the CT is much

quicker, because there is no likelihood of any

unexpected obstacles.

Although CT generally speeds up oilfield

operations, working with it requires specialist

skills. People tend to move into the area only

after gaining a full understanding of well

geometry and down hole assemblies, and

even then they will be asked to shadow a

seasoned professional for a period of time to

learn the ropes.

There are some situations in which CT is

not appropriate. Its maximum length, for

example, is around 6000 metres so it cannot

be used in wells that are deeper than this.

This is also the case if the well’s diameter is

inconsistent or too narrow, or if the well has

a severe curve (known as a dog-leg). If the

CT was to get stuck underground, removing

it is an extremely difficult job. If it is jammed

it will need to be cut either on the surface or

deeper down using special tools. The Hoist

or Rig can then recover the remaining bits of

coil tubing left behind in the hole.

Page 8: al-manhal Issue 1-2005 (English)

COILED TUBING

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al manhal number one 2005

Reel:

For the winding and unwinding of the CT, its

storage and transport. Depending on its uses

the tubing can be anything from 2cm to

10cm (0.8” to 4”) in diameter.

Injector head:

Provides the force to run the CT down the

well and to retrieve it afterwards. The

injector head features a ‘goose neck’,

which straightens the CT ready to be

inserted into the well.

PowerPack:

To generate the hydraulic and pneumatic

power needed to operate the CT unit.

Although lightweight, each unit is

designed to deliver the maximum power

possible.

Pumping unit:

The pump is used to deliver fluid down the

well either directly or through the coil. It is

used across a broad range of processes

from cementing to fracturing, as well as

coiled tubing applications.

Blow Out Preventor (BOP):

It is a Well Control equipment designed to

allow safe well intervention services to be

performed under pressure. The Blow Out

Preventor (BOP) is controlled from the

operator’s station in the control house

and is placed below the injector and

above the well head.

Control cabin or control house:

As its name implies, the Control House is

the operational nerve center of any Coiled

Tubing Unit. From the control house

console, critical monitoring of well bore

pressures, gases and fluid volumes takes

place, along with equipment pump rates,

speeds, torque rates and measurements

necessary for a successful coiled tubing

operation.

The Coiled Tubing unitconsists of 6 basic elements:

Pumping unit Blow Out Preventor (BOP) Control cabin or control house

Reel Injector head PowerPack

Photo courtesy: Schlumberger and Halliburton

Page 9: al-manhal Issue 1-2005 (English)

COILED TUBING

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al manhal number one 2005

APPLICATIONS OF COILED TUBING

There are dozens of applications for

coiled tubing in a typical oil field – here

are just a few:

1. Downhole maintenance

Making well repairs using solid tubing is

a major job, requiring the oil flow to be

killed and a rig to be erected over the

well to lower each section of pipe into the

well. Moreover, these pipes have to be

thrown away after they’re used, adding

to the cost of the operation.

Coiled tubing is narrower than the

diameter of the well, so it can be lowered

inside with the repair equipment

attached to it. Depending on the nature

of the problem the equipment could be a

unit to drill additional holes in the well

casing, so that oil can flow into the well,

or a unit to release acid to clear

blockages in the existing perforations, or

in the tubing as illustrated above. In

addition, CTU is used to clean wells from

propent after frac operations are carried

out.

2. Water shut off

After it has been in production for a

while, a well will generally see a decline

in the volume of oil it produces, with a

corresponding increase in the volume of

water it produces. A sensor (logging

tools) can be lowered on coiled tubing to

record data on oil and water flows, which

can then be analysed and interpreted by

engineers at the surface. The water flow

can then be cut off by inserting a bridge

plug in the appropriate part of the well,

or additional perforations can be made

in the well areas where the oil flow is

strongest as shown in figure A overleaf.

Both of these operations are also carried

out using CT.

Jetting nozzle to clearscale or any blockage in

the tubing

Coiled tubingRig up

position

This cross section shows howcoiled tubing is used indownhole maintenance to clearblockages in the tubing

Page 10: al-manhal Issue 1-2005 (English)

COILED TUBING

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al manhal number one 2005

3. ‘All in one’ well maintenance

Since the beginning of 2004, PDO has

been pioneering the use of coiled tubing

for ‘all in one’ operations –cleaning the

well, logging the well, making additional

perforations and then acidizing the well

all in one go. A new technology allows all

these activities to be carried out using the

same coil known as an E-Line plastic

coated coil.

4. Nitrogen lift

Using nitrogen to kick-start oil production

is a quick and cost-effective process. It is

applied in exploration wells or already

developed wells with impaired

Formations. It is needed when fluid is

trapped in the well bore, creating

sufficient pressure to stop the

hydrocarbon inflow from the reservoir

around it. Displacing this fluid with

nitrogen relieves the pressure, allowing

the reservoir to start flowing naturally

again. Coiled tubing is ideal for this

process because it involves a minimal

amount of equipment and personnel. It

also allows the rate and depth of the

nitrogen flow to be easily adjusted.

5. Perforating the casing

Because the zone where oil is flowing is

sometimes sealed off with a steel pipe

(casing), perforations must be made in

order for the oil or gas to flow into the

well bore as illustrated in figure B.

Perforations are simply holes that are

made through the casing and cement,

using explosive charges, and which

extend some distance into the Formation

(Reservoir).

6. Fishing

Coiled tubing is used to insert and remove

plugs down hole, which isolate certain

areas of the well. Getting the plugs out is

known as ‘fishing’ and it is a difficult task

that relies on having accurate information

on where everything is at the bottom of

the hole. Fishing is also used to retrieve

any equipment that might be lost down

hole.

7. Well kill

If a production rig develops a problem,

the well might need to be quickly shut

down to prevent excessive pressures from

damaging surface equipment. In this case

coiled tubing is lowered and a heavy ‘kill

fluid’ is pumped into the well to seal it and

prevent any more fluids from reaching the

surface.

Special thanks for their help in the

preparation of this story go to:

Tariq Al-Riyami and Khalfan Al-Kaabi(all from PDO)

Figure A Figure B

Page 11: al-manhal Issue 1-2005 (English)

COMMUNITY

SUPPORTINGTHE COMMUNITY

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SUPPORTINGTHE COMMUNITY

al manhal number one 2005

PDO is proud of its commitment to the local

communities in the areas where it operates.

The company strives to provide long-term,

sustainable benefits to the communities,

giving Omanis new job opportunities as well

as support for their traditional livelihood. To

this end, it has established a substantial

social-investment programme with a budget

which is earmarked for many different

purposes, all of which are focused on

improving the lives of Omanis. >>

Page 12: al-manhal Issue 1-2005 (English)

COMMUNITY

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al manhal number one 2005

One area covered by the company’s social-

investment budget is straightforward

donations: answering requests to help fund

conferences or exhibitions, to donate PCs to

schools and many other worthy causes as

decided by the company’s Grant & Donation

Committee. But a much larger proportion of

the money now goes towards strategic projects

that provide long-term benefits to help soften

the impact of having oil production facilities

close by.

Some of these projects are infrastructure

related, such as building schools, providing

water and electricity and grading roads. All

projects are carefully co-ordinated with the

various ministries, and are designed to

complement public works already taking place

or planned.

Training is an important part of PDO’s

social investment programme too. For

Omanis who are interested in a technical

vocation, PDO now sponsors a two-year

course, based in Fahud, aimed at high-school

graduates. The course covers topics including

English language, welding, computers or

mechanical engineering. The first intake of

students started in September 2003, and

already some have been hired by PDO

contractors or Local Community Contractor

companies ahead of graduation.

Some of the most significant social-

investment projects, though, are about

providing lasting opportunities for Omanis

outside the oil and gas industry. Here are two

examples:

Craft industry project

The ancient Omani craft of camel-bone carving

had become almost extinct – with just one

octogenarian artisan still practicing – when

PDO stepped in to try to resuscitate it. An initial

group of five young artisans have been trained

in the skills required, and more will follow. PDO

has also entered into partnership with the

Oman Heritage Gallery to market the finished

pieces at shops in Nizwa and al Hazm Forts,

plus Seeb and Dubai international airports.

There are also plans to export pieces to the

USA, where there is good potential demand.

Livestock initiatives

Many people in the south of Oman depend on

livestock for their living, because the desert

land is impossible to farm in any other way. A

new veterinary clinic, being built in Thumrait in

the south of the company’s concession area,

will provide a real boost to local farmers. In

addition, a laboratory extension to the Shelim

veterinary Clinic will also provide employment

for veterinary workers.

PDO also provides temporary

employment to families living near its

production facilities. Contracts generally last

for three months, and are often passed

between family members so that a family

can have a source of income for a year or

more.

All these activities help PDO maintain

harmonious relationships with its

neighbouring communities, making the

process of developing oil and gas assets

smoother as a result. And that’s good news

for Oman’s economy and its future

prosperity.

Special thanks to Rajaa Al-

Hammadi (PDO) who helped in thepreparation of this article.

Examples ofcamel bonecarvings - theMakhala (right)is used for thestorage andapplication ofkohl.

Page 13: al-manhal Issue 1-2005 (English)

COMMUNITY

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al manhal number one 2005

One of the most prominent ways in which PDO

has given opportunities to people in the interior

of the country is through the Local Community

Contractor – or LCC – initiative. Launched in

1998, the LCC scheme helps local businessmen

to develop their own companies. So far, some

60 companies have been established, providing

employment for more than 1000 Omanis.

The LCCs fall into two groups:

Al Ahliya (formerly Class A) – These are

larger, incorporated companies with multiple

shareholders and at least several

employees. They can tender for both oil-

related and non-oil-related work, the latter

including road construction or maintenance,

building and transport. Eleven such

companies exist at present, and PDO

provides favourable conditions to give them

a guaranteed flow of work, as well as giving

help and guidance to their management.

Private (formerly Class B) – Those LCC

companies that are not of the Al Ahliya type fit

into this category. They are mostly small owner-

managed enterprises, often set up by people

with no previous business experience and very

little formal education. PDO takes responsibility

for coaching these budding entrepreneurs in

business skills, using games and practical

demonstrations to get the key messages across.

For instance, an adapted version of the board

game Monopoly is used to explain how

investment works. PDO does not guarantee

work for these companies, but creates

opportunities with contractors through special

clauses in contracts and other incentives.

The LCC scheme has been a huge

success; PDO has watched the LCC

companies develop into truly professional

operations, something that is a source of

great pride for everybody involved. Next

steps include further developing the LCC

companies so that they are able to compete

on a level playing field with other

contractors, with no favouritism in the

tendering process. Some LCC operators

have already achieved this, and the hope is

that more will follow this lead.

Here are just two examples of LCC

companies that have gone from strength to

strength since the scheme began:

Al-Harsoosy Trading and Contracting Co(AHTC)

Founded in 1996, ATHC started out as a

small contractor operating from a temporary

cabin and with just one road grader working

in Nimr. Now a registered PDO contractor

providing civil engineering and earthmoving

services, the company’s staff has grown to

80 people (70% of whom are Omanis) and

it operates some 55 vehicles. AHTC is also

one of few LCCs to be certified ISO 9002 for

quality assurance. AHTC aims to be

recognised in Oman as the professional civil

engineering and earthmoving contractor

and to be at the forefront of the country’s

business sector.

Fahud Desert Trading Company (FDTC)FDTC specialises in water and cargo haulage,

operating in the north of Oman. It was

established as an LCC in 1999 and is held by

the Darai tribe, with its main business office in

Ghala and site offices in Fahud and Qarn

Alam. FDTC’s business has grown substantially

since it started out, and employees now

number 124, mostly Omanis. It operates some

39 vehicles to service its contract to provide

PDO with water and cargo haulage.

Local Community Contractorshelping people to help themselves

A centre for business -LBDWhen PDO’s Business Development Centre

opened in January 2002, it marked a new

beginning in PDO’s relationships with

local businesses and community-based

contractors. The purpose-built centre is

deliberately located in an unrestricted area,

so anybody in the business community can

visit to get information or register as

contractors. It currently attracts more than

500 visitors a month.

Special thanks to Said Al-Kindy

and Peter Rush (all from PDO) whohelped to prepare this piece.

Page 14: al-manhal Issue 1-2005 (English)

OIL RIGS

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al manhal number one 2005

At any given time, Petroleum Development Oman may have as

many as 32 rigs operating across the country, drilling both

exploration and production wells. The rigs are categorised as mobile

rigs or breakdown. A mobile rig has an average of between 50 to

70 loads whereas breakdown has an average of between 100 to

120 loads. The nature of their work means the rigs have to be

mobile: a production rig will often be moved every month, whereas

exploration rigs tend to stay in the same location a little longer.

As a result, PDO has to manage an average of one rig

move a day—a complex and difficult process that involves some

40 people at both the departure and arrival points, and the rig

move team itself which numbers around 50 people. Time is

always tight: as a day’s delay in moving a rig can mean a day’s

loss of oil or gas production. So PDO has recently introduced

measures such as the ‘twilight move’ where the teams operate

under lights, extending the available working time until 10 p.m.

In future a ’24 hour move’ with no pauses until the move is

completed may be possible.

Here we explain how rigs are moved, and some of the

challenges involved.

Office based planningDetailed planning is essential to a successful rig move.

Once notification has been received that a rig needs to

move, the scheduler draws up its timetable and allocates key personnel.

These include the rig-move supervisor, who has operational

responsibility for the move, plus the ‘tool pusher’ who controls the

convoy speed on the road. The rig-move supervisor checks the route to

make sure the road conditions and terrain are acceptable; he will also

ensure that there are no problems with overhead power cables or other

obstacles (rig loads can be up to 12 metres high!). He then meets with

the scheduler to plan the move in detail.

HOW TO MOVE A RIG

Dismantling in present location

With the move plans in place, it is time to dismantle

the rig. In breakdown rigs the mast is dismantled

piece by piece and loaded on to trailers, whereas mobile rigs are

designed for the mast to be carried whole on its own wheels,

making them faster to move. The dismantling and loading has to

be done in an exact sequence which is then carried out in reverse

at the rig’s destination as the last load out is the first load in at

the new location – this prevents mistakes and wasted time when

it comes to reassembling the equipment. A move of this type

doesn’t just involve the rig itself; the whole camp may have to

move too, including accommodation blocks, water tanks,

generators and temporary shelters.

1

2

Page 15: al-manhal Issue 1-2005 (English)

OIL RIGS

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al manhal number one 2005

Convoy on the move

If the move is over 10 kms, normally the camp would also move with

the rig. Two truck convoys set off – with an average of 12 trucks for the

rig wide loads and another 12 for the camp. When in convoy, the rig-

move supervisor will get assistance from the Royal Oman Police, who

travel ahead of the convoy to control the traffic. There would be a rig

move supervisor at the head and tail of the convoy, who communicate

by mobile 2 way radio. The tool pusher will normally control the

convoy’s speed which, depending on road conditions, can range from

5 km/h to 20 km/h. The convoy sequence is maintained at all times –

if one truck has to stop for any reason all the others do too, until

everyone is ready to depart in formation again.

The finished rig working normally

Once the move is finished, the rig-move supervisor and drilling supervisor (DSV)

liaise with the scheduler to score it in terms of punctuality and any process issues.

Then, the move team is demobilized until its next call to action.

Reassembling the rig on the new site

Once the convoy arrives at the new location, it’s time to start

‘spotting’ – unloading the trucks and laying out all the equipment

ready to be reassembled. A typical breakdown rig takes about 4-5

days to install and become fully operational.

3

5

4

Thanks to Nabil Riyami and Said Naaby(from PDO) for their time and expertise.

Page 16: al-manhal Issue 1-2005 (English)

A DAY IN THE LIFE OF...

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al manhal number one 2005

HALA AL-MUBARAKPDO Applicant

Applying On-line

I was disappointed when I heard that there was a job opportunity in

PDO and that I might not get back to Muscat in time to apply for it.

But, I was delighted to see from PDO’s web site that I could apply

on-line. The job I was applying for was in HR, because I love

working with people.

Sitting for the test

There was a lot of reading material! I had to analyse the

information and I felt that there was so little time to answer all the

questions. But I realised that this is how the real world is; making

decisions quickly and acting upon them and so I had to keep up

with it and I managed to do just that.

8:30 a.m. 9:00 a.m.

Page 17: al-manhal Issue 1-2005 (English)

A DAY IN THE LIFE OF...

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al manhal number one 2005

The interview

I felt at ease at the interview because at first I spoke about myself and

the things I like to do. It may sound odd to have a psychologist work for

an oil company but in reality a company like PDO is not just about oil,

pipes and engineering it’s also about the people- the employees. As in

any organisation, interpersonal relations are very important. Making

sure that people are working in the best way possible and focusing on

staff satisfaction can all contribute to better business results and that’s

where I could fit in. I could help ensure that people’s potential is used

effectively. I hope I get the job!

Did You Know?

Last year, PDO introduced an online recruitment

system which allowed applicants to learn about

job vacancies and to send in applications

directly via the internet. This has made the

recruitment process for both PDO and those

applying to the company much quicker and

easier. If you are interested in seeing what jobs

PDO has on offer at any one time, you can visit

the website at http://www.pdo.co.om/pdo/ and

look under the “Careers” menu.

11:00 a.m.

Having just majored in Psychology, Hala had heard of a job-opening in the Human Resources Departmentwhile she was on holiday in London. She applied on-line and was called in for an assessment. Theassessment usually includes three exercises: one is the structured interview; analysing some generaltopics in detail, the second is the proposal; solving problematic situations and the third is what is knownas the ‘in-tray’; where the applicant responds to a case study before finally having an informalinterview with the line manager of the department.

“PDO is notjust aboutoil, pipesandengineering-it’s alsoaboutpeople.”

Page 18: al-manhal Issue 1-2005 (English)

STOIIP

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al manhal number one 2005

A common misconception about crude oil is that it is found in large underground pools,

conveniently located below your favourite petrol station, and that once you have drilled a

hole into it, all the oil flows with ease to the surface. In reality, the crude oil is contained in

holes in the rocks, much like water in a sponge, buried in the earth. Sometimes the holes in

the rocks are large. Sometimes they are microscopic. Sometimes the oil is thin enough to

fuel your car and sometimes it is so thick that it must be mined. Sometimes the oil field is

located right next door and sometimes it is very remotely located. In Oman, we have the

whole range. The result is that it can take significant effort and cost to find and produce the

oil. When we do produce it, we historically leave more in the ground than we are able to

economically extract.

The stock-tank oil initially in place (STOIIP) is the total volume of all the known oil initially

in place in a given reservoir expressed as the volume it would fill if it was all brought to the

surface. The STOIIP Pie chart illustrates that if PDO sticks to a ‘traditional approach’, we will

achieve a ‘traditional’ recovery factor, perhaps 30% of the STOIIP if we are lucky. That means

that 70% of the STOIIP is still in the ground!

The STOIIP Pie chart also shows that a technical limit mindset provides the creative

tension we need to improve our performance. Technical limit is a term given to a point of

perfection or perfect performance based on current levels of technology. Changes in

technology will change the limit. This is why we are able to get more recovery from our fields

today than we did in the past.

Knowing that there are significant volumes of oil waiting for us is driving the Petroleum

Engineers (PE’s) in PDO to look for alternatives to get more of PDO’s valuable oil resource

out of the ground, moving us toward the technical limit. In order to do this, the PE’s are

focussing on three key areas:

Well and Reservoir Management (WRM) to get the most out of the current development

Increased oil recovery by improved ‘sweeping’ of the oil through the holes in the rocks

by injecting gas or water into it.

Enhanced oil recovery (EOR) to increase oil recovery through modifying how the oil flows

through the rock (e.g. by introducing other fluids into the reservoir to make the oil thinner,

to get it to release from the surface of the rock, or to dissolve it).

Attention to WRM in 2004 generated significant gains in production and reduced the

production decline rate. Additional gains are expected as the process is embedded in all of

PDO. Waterflooding has already been done in a number of fields. Major field studies are

ongoing that will result in new Field Development Plans to implement waterflooding in

additional fields. Steam and miscible gas projects are currently being pursued by the EOR

Directorate. As a result of the PDO EOR strategy, PE’s are now investigating the use of

polymer flood, miscible gas, and unconventional EOR methods to improve recovery in some

of PDO’s mature fields.

The prize for PDO is huge, but the cost to get it could be high. PDO will have to balance

these conflicting parameters to maximise the value of the subsurface assets to Oman.

RECOVERING OUR STOIIP

Thanks to Kathleen Heller (fromPDO) for her help in preparing thispiece

Page 19: al-manhal Issue 1-2005 (English)

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